Analysing risk management in holiday and hospitality industries tourism essay

Loyalty of guests and tourists is created only by strong relationships where the guest feels special and important. Generally, people go to a hotel or plan for a trip on an emotional feeling.

The feeling should be good, risk free, safe, and effective and even to increase their confidence. Almost all guests go to a hotel for the same reason. If the hotel gives them a homely feeling then they will come over there again and again. But, if the hotel is not making them feel important or special, they will buy it somewhere else.

The loyalty of customers is totally dependent upon how safe they feel at hotel. They should feel important and special. They should get proper attention by the hotel they dealing with. The hotel should believe that the guests coming to the hotel are an important part of servicing customer needs. In order to make a loyal guest, we need to go ahead of their expectations from the hotel.

The WTO (World Tourism Organization) had conducted a research on tourism all across the world. They have provided some of the critical and interesting facts on the contribution of Tourism and Hospitality Industry to the whole world. The Average Annual Increase is 4. 0 %. But his sector is also facing a number of risks and we are trying to manage those risks!

The main aim of the risk management process is to increase the prospects and opportunities and decrease the consequences of a risk event. During the whole process, there are common conventional stressors, but our reaction to those stressors differs from person to person as we are all unique persons. The anxiety and confusion that come from not knowing what lies ahead can create stress. People used to utilize basic defenses when high degree of uncertainty arises. In this state of vagueness, generally people easily way out to disbelieve, removal and self-defense. Individuals are told that the ways used in old days are no longer functioning and often this note becomes modified that they are not appreciated. We need to work hard to manage any kind of risk successfully. When everything is planned carefully, the proper foundation is being built, launching a product becomes much easier, and we can improve the chances of success. If we are too impatient, and if we expect too many results too soon, our plans for change are more likely to fail. It is therefore of critical importance that the present tourism systems should be considerably made stronger to give comfort to the tourists from all across the world.

www. gov. ab. ca/edt/tda/abstats. htm B. C. Visitor Study Highlights; Tourism British Columbia.

Today the Hospitality and Tourist Industry is facing the following type of risks:

Safety Risks

Technology Risk

Political Risk

Business Risks

Financial Risks

Following is the process of Risk Management:

The big Picture; 1997-98; Vol. 41, Travel Industry World Yearbook.


Online research data has been taken from different web sites, articles, and theoretical studies from different books. We have used the methodology of collecting information from both the sources. And these sources include personal interaction with experts which is the primary source of information and information collected from websites is the secondary one.


Following are some of the limitations which the Hospitality & Tourist Industry is facing:

Incorporation of appropriate planning and implementation process.

There should always be a planned and prepared safety measures for the tourists.

Consideration of core principles and limits of suitable change recognition and protection of major assets including both cultural and natural, while authorized access to hospitality and tourism.

There should always be a control of tourists/tourism that is completely different each year/season.

There should be a clear specific definition of education and limits to both tourists and locals.

Ministry of Small Business, Tourism and Culture, Tourism Highlights – 1992; by Industry Research


Tourism & Hospitality Industry is facing followings types of risks:

While planning g a trip for a hilly area, conditions at site may go beyond control.

Entrepreneur/management/tourist industry – Lack of understanding between Contractor and owner. Generally, frequent changes in designs/planning/execution instructions etc lead to misunderstandings.

Economical and financial risk- Unavailability of funds, Inflation, Change in orders etc.

Environnemental conditions, natural restraints and contraints, Réhabilitation.

X factor – Natural calamities such as, Earthquake, Flood, Fire, Cyclone, & Unknown factor.

International or local market conditions.

Political risks- Changes in rules and regulations, War or political uncertainty.

In order to meet with the above risks, following services should be provided by the tourism industry for their tourists:

The tourism industry should make the trip THE BEST and THE SAFEST by providing different kinds of advanced life-enhancing amenities and should also provide vital support to the tourists.

They always need to keep coming up with new products that are specially developed for older age and physically challenged people, and which will be quite helpful in their trip.

Provide advice and information through their help lines, publications and online at all times.

Fund pioneering research into all aspects of trips.

Join forces that will ensure more of their funds go where they’re needed.

The main aim of developing customer service standards is to continuously change and make periodical updating desirable. For this reason the company offers a feedback form in electronic format. To perform the task of updating, it would welcome getting relevant feedbacks and requests from guests to further improve the service.

www. tourism. gov. au/publications.

Whenever a guest coming to the hotel he/she will be asked to fill up the following table:


Service levels


How do you find the environment?

Friendly or Boring

What changes guest wants?

Do you think u get proper attention from the hotel staffs?

Yes or No

Where is the gap?

What you liked and what you would you like to change about the following:

Services, Spectrum of facilities available

What kind of change you want?

Any references?

Yes or No

Name of the references

In the hotel, the following form is used for recording informal comments by guests. The following feedback form should be received by the respective hotel staffs.

Guest Feedback Form

Date: __________________________________________________

Guest’s name: ________________________________________

Room No: ____________________________________

Phone: ________________ Email: ___________________________

Rate the following factors on a scale of 1 to 5 (5 being the best)

The hotel has provided clear information about what kind of services are available.






Before the start of service, goals and expectations were jointly identified.






The hotel staff has conducted a needs assessment to identify your specific needs for happy and safe stay






The hotel staff was able to support all your needs at the hotel






The hotel staff provided you with sample list of facilities prior to stay.






The hotel staff keeps you aware of any changes in availability of the rooms.






The hotel staff provides feedback every activity.






The hotel staff provides recommendations about future stay.






Following strategies should be implemented:

The main aim the strategy should be to ensure guests feel safe, supported and have access to appropriate services. To achieve this, they are keen to explore ideas for working in partnership across government as well as with business and the community.

The law in Australia is developing a whole-of-government loom for the way they support tourism into the future. The strategy is going to identify priority areas for action with an emphasis on making positive changes in tourism industry.

Social isolation is one of the main reasons behind severe health problems. Basically, the meaning of social isolation is a small interaction of people with others mixed with the feeling and experience of loneliness. It has become a serious problem for people who are into this situation because it is giving a very adverse impact on health and wellbeing of people.

Even though the most of the people are not isolated socially, the number of individuals at risk of societal separation is expected to rise with the ageing of the people.

And these kinds of individuals are either retired, physically handicapped and suffering from ill health or death of a partner. So, in order to help this particular section of population, Tourism and Hospitality Industry is taking a number of different measures (as motioned below).

The Vancouver Sun; June 1998, Tourism Tops in Job Creation Study.

Improving conditions:

In order to improve the condition of the Tourism, the governenmnet of Australia is coming up with the following services:

Rates of the hotels should be decreased and should provide proper services.

The hotels should always be kept clean and hygienic. To keep the place clean and hygienic there should be a well managed house keeping department.

As we know that the success any organization is totally dependent upon the employees of the organization. If the employees are getting their job satisfaction then only they give their 100% to the organization. So, If the emplyees of the hotels are not satisfied with their salary, then they should be paid competitively. So the salaries should be competitive (In comparison to other organizations). Hence, agency should always do Salary survey, to settle this grievance of the Employees.

Employees’ nature of the job should be demanding and challenging at every stage but not so complex that it comes out completely impossible. It should not be boring, hence, set challenging goals for the employees of the hotels.

Upward/Downward flow of communication should always be ensured.

Management of the agency should be highly effective.

All the employees of the hotels should feel the sense of belongingness with the kind of work they do.

Doctors (In case of emergency during the trip) should always play the role of counselors and mentors in the hotel industry.

At all times, the hotels should identify the need of the Employees as well of the diseased people and should decide the motivation strategy.

If the social work agencies are facing difficulties in reaching the place, then the government should also provide transportation to them.

In order to promote its marketing plan, the hotels should arrange a presentation to make the people aware of the changes to be implemented and has planned to establish a regular schedule of meeting with the partners. One of the hotels in Australia has described its promotional strategy in the following chart:

Ability to meet challenges

Hospitality & Tourism is one of the most vibrant international industry hubs. The industry always enhances its service abilities to meet continuously changing demands of market and particular requirements of the customers. Currently, there are many stimulating growths have taken place in this industry. Their ruthless expansion is in complete move.

Tourism British Columbia. B. C, Visitor Study, The Report on Visitors to B. C. Rockies tourism Region – 1998.


Based on the reputation of royal chain of hotels one can say that there will not be any compromise to the royal and luxurious services of the hotel. This royal chain of hotels has been known to generate maximum revenue in Hotel business; it has some of the best marketing minds and would definitely come up with plans to attract maximum guests. Going on the reputation of the management it is pretty sure it would sort out all the issues which are there in design, planning of the hotel.

Hospitality and Tourism Industry has great prospects and is good for any kind of investment.


Their vision should see a world in which people flourish.

Their mission should be to give the best service to the people.

They should make a real difference to the stay of people.

They should create one united team that will be stronger and more influential than ever before.

They should develop excellent and sustainable services that enhance people’s stay.

They should deliver transformational and sustainable change through their research, policy and influencing.

They should always provide definitive services tailored specifically for people staying there.

They should maximize their reach through proper advertisement.

They should create a powerful and a compelling sector.

They should create an effective partnership with their national and regional networks.

The building layout should be arranged in such a manner that it will suit each and every kinds of guests.

Major part of labor force will be replaced by technology. It will be more profit oriented.

The hospitality industry should provide some sort of corporate discounts.

The hotels must revisit the rates plan for the rooms and suites in comparison to other hotels in the city.

It would be more effective and revenue earning if the distribution would be in decreasing order where the rates are in increasing order.

The Tourism Industry should ensure that guides of the tourists prior to commencement of new assignments have received adequate training and information enabling them to understand the hazards of work and to protect their health from hazardous ambient factors that may be present. The training must adequately cover:

a) Knowledge of equipment, materials, and tools;

b) Known hazards in the operations and how they can be controlled;

c) Potential risks to health;

d) Precautions to prevent exposure;

e) Hygiene requirements;

f) Use of protective clothing and transport and;

g) Appropriate response to operation extremes, incidents and accidents.